Hi everyone,
Looking for a bit of advice on a property we are negotiating on at the moment. Here’s the story in a nutshell:
House $185 000
$100 deposite put down and offered 175 000 on 60 day settlement on a contract that we signed, then sent to the vendor.
2 months went by as vendor had ‘legal issues’ trying to get property into just his name.
Arrived back from holidays to find a contract in the mail. Vendor had crossed out 175 and put 185.
We returned contract with our original price but reduced the settlement time to 30 days.
Still waiting to hear back, however on looking on the realestate.com website, I now see the house being advertised at $210 000!!
Can someone tell me, is this allowed if we are still negotiating!!??? What game is this agent playing exactly? Has anyone had this kind of thing happen to them?
I’d really like your advice before taking it up with this agent?
Thanks for your help,
Regards,
Ian
Hi,
The sale of a house is not too different from the sale of anything else.If you were at the market and busy haggling with the storekeeper over the price of a jacket and another person entered the fray offering more than the original price the store keeper can so “sorry mate I’m selling to this guy who is offering me more” and that’s that. Same too with a house. Until you’ve actually entered into a contract all signed and sealed the house is still for sale at whatever price the vendor chooses.
You say you’ve put down $100 deposit? Was anythign signed at that point? Do you have a receipt and some sort of paperwork indicating what that deposit is for? That may have been a holding deposit for example which means the vendor wont sign another contract until a certain time period has expired, but only if you have something in writing that says that.
The game the agent is playing is called “get the highest sale price”. [biggrin]
Until that contract is signed and witnessed by both you and the vendor a price has not been agreed on and no obligation to sell or buy has been created. (though it is a bit rude)
Surrey.
Hi Surrey,
Until that contract is signed and witnessed by both you and the vendor a price has not been agreed on and no obligation to sell or buy has been created. (though it is a bit rude)Damn right it’s rude. As far as I am aware, no one has offered a higher price, otherwise it wouldn’t be advertised on the website for 210 000 right?
I was told in another post I made that the seller and agent agree on a price that suits both of them before putting it on the market. If that’s the case, then obviously they have been in cahoots with each other and decided to ‘can’ our negotiation and put it back on the market at a higher price.
A contract had been signed by both parties, but we were negotiating on price – obviously both parties signing a contract while negotiating means nothing.
Pretty annoying. Yhanks anyway,
Regards,
Ian
And another thing, what’s the point behind putting a deposit down if someone can come along and take the house from under your nose?
Hi Ambo,
As Surrey has indicated the price is not agreed until both parties sign off the contract of sale or whatever it is called in your home state.
Up until the moment that both of you sign the contract and agree to all conditions anyone can buy it. I wouldn’t hand over my deposit until this point in time.
Not only do buyers face this situation you also can have a property sold out from under your nose if you fail to fulfil any of the subsequent conditions such as X days to unconditional finance etc.
It sounds as if you have fallen in love with this property and that you are being manipulated by the agent and/or buyer.
Make a business decision – move on and find something else – there will be a something else.
Derek
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0409 882 958
Property investment advice and researched property in quality locations available.Hi Derek,
That’s a BIG negative on the fallen in love with the property scenario. I don’t particularly care about the house, we have others that we are currently looking at anyway.
What I do care about are agents with poor and inadequete communication who are to gutless to tell the situation to my face, but do what they want to do in an underhanded manner. In my book that’s totally disrespectful and very poor business sense…that’s what the issue I have is. Was I supposed to read this guy’s mind that he had put it back on the market?? It was only purley by chance that I discovered that it had been listed again.
Up until the moment that both of you sign the contract and agree to all conditions anyone can buy it. I wouldn’t hand over my deposit until this point in time.For someone to do this, the agent would have to tell them the price you offered wouldn’t they?
Anyway…..that’s my vent for the evening [chill]
Hi Ambo72,
Given your description, do you really want to deal with people who behave in this way?
You have no power to change the way other people behave regardless of how pissed off you feel. They will just find another way to manipulate you (or anyone). If you have legal recourse, go for it and give them a run for their money. Just give up any “investment” (particularly emotional) in the outcome.
I agree with Derek, move on to the next deal (even if you decide to play a little on the way out).
Anne
Hi Anne,
Now that I have calmed down……..I gave the property the flick today and will be collecting the deposit on Saturday.
Apparently the vendor has heard how well this town is doing and wanted to up the ante, hence the change in price.
Smart move Ambo72. Just the sort of vendor we all need to stay away from. They might even find that greed got the better of them.
Anne.
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